British Steel has halted its consultation on potential redundancies affecting up to 2,700 workers at its Scunthorpe plant, following the government’s takeover of the company earlier this month.
Jingye, the Chinese firm that acquired British Steel in 2020 with promises of a “new chapter,” had previously announced plans to shut down Scunthorpe’s two blast furnaces. This move threatened thousands of jobs and would have eliminated the UK’s ability to produce primary steel. However, the UK government responded by recalling Parliament to pass emergency legislation that granted ministers the authority to take over the company and maintain operations at the plant.
On Tuesday, British Steel confirmed that it had officially withdrawn redundancy consultation forms, announcing the end of the process. This decision came after senior government figures rushed to arrange an emergency supply of materials to sustain operations at the site’s two furnaces, famously nicknamed Queen Anne and Queen Bess.
Lisa Coulson, the interim chief commercial officer at British Steel, said in an official statement, “This has been a difficult and worrying time for British Steel staff and their families. I can, however, confirm that we are closing the redundancy consultation without action. Since the government passed its legislation on Saturday, we have been working day and night to ensure we are able to stabilise our operations.”
British Steel stated that securing a steady supply of coking coal had prevented the need for drastic measures, specifically avoiding what’s known as a “salamander tap,” an emergency procedure where workers drill into the furnace base to drain molten metal and slag.
Tapping Queen Bess would have effectively paused its operations, allowing the limited remaining raw materials available to be diverted to keep Queen Anne burning as normal. In theory, Bess could have been restarted but in practice this is not cost-efficient for furnaces that are nearing the end of their lives.
The industry minister, Sarah Jones, said: “The action this government took on 12 April, and the measures we’ve taken since, matter greatly for this country, and are of huge importance to thousands of steelworkers and their families. We will always stand up for our steel industry.
“Now, thanks to our decisive action to protect steelmaking at Scunthorpe, British Steel has cancelled the redundancy consultations started by its owners Jingye, bringing certainty for thousands of hard-working staff for the long term.” she added.
Source: The Guardian